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Central Issue:: Option 1: Expand 6 Skus of The 8-Oz Product Line Into One or Two Selected Supermarket Channel Regions

The central issues for Naturview were to increase its valuation by growing revenues from $13 million in 1999 to $20 million by 2001. To achieve this, Naturview selected an option to expand the distribution of six SKUs of its top-selling 8-ounce yogurt product line into one or two regional supermarket chains. This option was expected to allow Naturview to meet its sales growth target through high annual increases, enter the large supermarket yogurt market, leverage its existing popular 8-ounce products, and benefit from broker relationships and predicted supermarket channel growth.

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Shibani Shankar Ray
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47 views

Central Issue:: Option 1: Expand 6 Skus of The 8-Oz Product Line Into One or Two Selected Supermarket Channel Regions

The central issues for Naturview were to increase its valuation by growing revenues from $13 million in 1999 to $20 million by 2001. To achieve this, Naturview selected an option to expand the distribution of six SKUs of its top-selling 8-ounce yogurt product line into one or two regional supermarket chains. This option was expected to allow Naturview to meet its sales growth target through high annual increases, enter the large supermarket yogurt market, leverage its existing popular 8-ounce products, and benefit from broker relationships and predicted supermarket channel growth.

Uploaded by

Shibani Shankar Ray
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Central Issue :

Attaining the highest possible valuation to find another investor or


getting acquired.
Achieve the above by Increasing revenues to $20 mn by 2001 from
$13 mn in 1999

Option selected :

Option 1: Expand 6 SKUs of the 8-oz product line into one or two selected
supermarket channel regions

Advantages of the option selected:


Naturview will be able to-
achieve its sales growth target by 2001 (high sales growth annually)
Enter the supermarket channel which forms 97% of the refrigerated
yogurt market in dollar value
sell the 8-oz product line which was its bread and butter and
represented the largest dollar and unit share of the market
Take advantage of its brokers trade relationships with the
supermarket retail chains in the NorthEast and the West
The supermarket channel was predicted to grow at 20% annually in
unit volume and thus would secure high profits in the long run

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